" so that "banks getting a bailout" isn't possible since the currency control of Bitcoin doesn't allow printing it out of thin air for"
?
What part of 'the economy would crash and burn' do people not understand?
The banks would have gone down like dominoes and taken the entire system with it. This isn't 'fear mongering' it's basically just math, you can see how the system is connected and what will happen.
That's what happens when systems are tightly intertwined. We could entirely firewall them, but then they wouldn't be remotely as efficient.
The fallacy of 'Hard Currency' is that people think we can avoid these problems with some extant construct, like 'Gold' or 'Digital Proof' but that doesn't solve the problem at all.
Economies are integrated systems that have to be regulated as best we can there is just no way around it.
'Hard Currency' is an 'instinct' that develops into an ideology that just doesn't hold up.
Far from 'weakly enforced regulations' most Western nations have very well and strongly enforced regulatory regimes. There are rules upon rules about what is allowed and what is not.
Securities Regulation are maybe a bit iffy, particularly insider trading, but that's only one thing.
The only way to avoid the problems we saw in 2008 would be to have more effective regulation of the parts of that system that failed, crypto won't save us there.
Finally, the banks were bailed out mostly with loans which they paid back, not free money. If there was a big funny business bailout, it was the mortgages that the Fed accepted as collateral at face value, which was more or less a bailout of homeowners, related to the fact the issue was with homes, not so much currency.